Current economy-class public transport fares maintained
Current economy-class public transport fares maintained
JAKARTA (JP): Minister of Communications Giri Suseno
Hadihardjono said on Wednesday the government would not increase
economy class fares on public transportation given the damage the
economic crisis had caused to people's purchasing power.
Giri said that since a large number of people were still
suffering from the economic crisis, raising transportation fares
would only add to people's burden.
"I think we do not need to increase economy class fares on
public transportation because it would put a heavier burden on
the people.
"However, the government will allow transportation operators
to increase the fares of their executive and business class
services," he announced.
Giri said executive class train fares could be raised by at
least 15 percent.
Economy class fares on land and sea transportation are set by
the government, while executive and business class fares are
determined by transportation operators.
Giri said transportation companies could realize handsome
profits from executive and business class services to subsidize
their economy class service.
The House of Representatives approved on Tuesday
transportation operators' plan to raise their fares by between 10
percent and 300 percent later this week.
The chairman of House Commission IV for public works,
transportation, tourism, communications and public housing,
Burhanuddin Napitupulu, said the House and the government had
approved the increases in May, but the implementation of the new
fares was delayed.
Burhanuddin said the House agreed fares for sea transportation
could be raised 35 percent, train fares between 10 percent and 20
percent and bus fares between 100 percent and 300 percent.
"Our transportation operators are faring very poorly at the
moment because they do not have enough money for the maintenance
of their vehicles or ships. Transportation companies are often
neglecting the safety of their passengers," Burhanuddin said.
The president of state shipping company PT Pelni, Isnoor
Haryanto, said current fares only met 40 percent of the company's
operating costs.
State railway company PT Kereta Api Indonesia president Eddy
Haryoto said the company's economy class fare was currently
between 25 percent and 40 percent below operating costs.
"The fares on our Jabotabek electric commuter train are 55
percent below operating costs. In 1998, our losses from operating
economy trains and the Jabotabek train ran as high as Rp 223
billion," he said.
He said demand for executive class service was very high at
the moment because the economic crisis had forced many
businesspeople to shift from air travel to train.
Demand for executive class service reached 80 percent of
capacity during weekdays and over 100 percent during the
weekends, he said.
As part of its effort to meet the demand and offset the losses
of its economy class service, the company will increase executive
class capacity aboard its trains, Haryoto said.
The chairman of the Organization of Land Transportation
Owners, G.T. Soerbakti, said most bus companies were currently
verging on bankruptcy.
"Around 40 percent of bus operators have gone bankrupt. Only
50 percent of intercity buses still operate at present," he said.
(gis)